CSL Historical Financial Performance in US Dollars

Transcription

1 For immediate release 23 October 2012 CSL Historical Financial Performance in US Dollars In February 2012, the company announced its decision to move to US dollar reporting commencing with the 2012/13 financial year. US dollars are the pharmaceutical industry standard currency for reporting purposes. The move also reflects the increasing predominance of the Company s worldwide sales and operations in US dollars. To assist investors during the transition the Company is today lodging with the Australian Securities Exchange sets of financial statements for the first half and full year financial 2012, restated in US dollars. A 5 year financial summary in US dollars is also provided. The financial statements have been prepared using Accounting Policies consistent with those applied in the preparation of CSL Limited s audited consolidated financial statements for these periods. These accounting policies can be found in Note 1 of the CSL Limited Financial Report contained in the CSL Annual Report for the relevant period and available from the company s website The attached financial statements are unaudited but have been subject to Agreed Upon Procedures carried out by Ernst & Young. We expect these to form the prior comparable period disclosures in the CSL Group Financial Statements for the half year ended 31 December 2012 (to be reviewed by Ernst & Young) and full year ended 30 June 2013 (to be audited by Ernst & Young). The five year financial summary has been prepared by translating the Group s financial statements using exchange rates and accounting policies applicable to the relevant period. For further information, please contact: Mark Dehring Head of Investor Relations CSL Limited Telephone: mark.dehring@csl.com.au

2 CSL Group Five year summary presented in US Dollars Consolidated Income Statement For the year ended 30 June Jun Jun Jun Jun Jun Dec US$ Millions Months 12 Months 12 Months 12 Months 12 Months 6 Months Continuing operations Sales revenue 3,179 3,412 3,909 4,097 4,616 2,324 Cost of sales (1,724) (1,784) (1,918) (2,083) (2,390) (1,253) Gross Profit 1,455 1,628 1,991 2,014 2,227 1,071 Other revenues Research and development expenses (203) (226) (278) (323) (370) (168) Selling and marketing expenses (355) (359) (429) (434) (506) (232) General and administration expenses (225) (306) (209) (207) (238) (129) Finance costs (45) (46) (16) (14) (41) (15) Profit before income tax expense 848 1,010 1,207 1,167 1, Income tax expense (221) (164) (286) (249) (246) (130) Profit attributable to members of the parent company , Segment information For the year ended 30 June Jun Jun Jun Jun Jun Dec US$ Millions Months 12 Months 12 Months 12 Months 12 Months 6 Months Sales CSL Behring 2,578 2,862 3,181 3,494 3,909 1,950 Other Human Health IP Licensing Intersegment Elimination (54) (86) (112) (117) (145) (67) Total sales 3,179 3,412 3,909 4,097 4,616 2,324 Total Segment Revenue CSL Behring 2,590 2,876 3,188 3,499 3,913 1,953 Other Human Health IP Licensing Unallocated / Intersegment Elimination (32) 71 (80) (90) (104) (51) Total Consolidated Revenue 3, ,732 4,057 4,228 4,814 2,429 EBIT CSL Behring ,136 1, Other Human Health (23) (38) (5) IP Licensing Unallocated (28) 9 (26) (39) (51) (17) Total Consolidated EBIT 861 1,008 1,188 1,154 1, EBITDA CSL Behring 978 1,089 1,253 1, Other Human Health IP Licensing Unallocated 10 (24) (34) (45) (15) Total Consolidated EBITDA 987 1,143 1,326 1,324 1,

3 CSL Group Five year summary presented in US Dollars Consolidated Balance Sheet As at 30 June Jun Jun Jun Jun Jun Selected items US$ Millions Cash & cash equivalents 675 2, ,171 Trade and other receivables Inventories 1,153 1,235 1,239 1,565 1,483 Other Current Assets Total Current Assets 2,511 4,015 2,845 2,968 3,445 Trade and other receivables Property Plant & Equipment ,029 1,297 1,381 Intangible assets Other Non Current Assets Total Non Current Assets 2,005 1,962 2,021 2,478 2,456 Total Assets 4,517 5,977 4,865 5,447 5,901 Trade and other payables Interest bearing liabilities and borrowings Other Current Liabilities Total Current Liabilities , Trade and other payables 4 15 Interest bearing liabilities and borrowings ,120 Other Non Current Liabilities Total Non Current Liabilities 1, ,474 Total Liabilities 1,817 1,545 1,274 1,530 2,425 Retained Earnings 1,548 2,145 2,688 3,162 3,713 Total Equity 2,699 4,432 3,591 3,917 3,477 Miscellaneous Metrics For the year ended 30 June Jun Jun Jun Jun Jun Dec US$ Millions Months 12 Months 12 Months 12 Months 12 Months 6 Months Basic EPS (cents) Cash Flow from Operations ,029 1,005 1, Dividends (US cents per share) Payments for Property Plant & Equipment Payments for Intangible Assets Net Interest Expense / (Income) 13 (1) (19) (13) (2) (0) Depreciation/Amortisation Behring Product Sales Immunoglobulins 871 1,063 1,197 1,494 1,722 Specialty Products Albumin pdcoag Helixate Total Product Sales 2,386 2,695 2,984 3,313 3,713

4 CSL Limited ABN: Abbreviated Interim Financial Statements presented in USD for the information of shareholders for the half year ended 31 December 2011 These financial statements have been prepared using the same accounting policies as applied to the CSL Limited half year financial statements for the period ended 31 December 2011 issued on 22 February 2012 and available on the Company s website with the exception of the following: The half year financial statements were presented in A$000 while this report adopts a Presentation Currency of US Dollars and is presented in.

5 CSL Limited Consolidated Statement of Comprehensive Income in USD For the half-year ended 31 December 2011 Notes Consolidated Entity December 2011 Sales revenue 2,324.0 Cost of sales (1,252.9) Gross profit 1,071.1 Other revenue 2(a) Research and development expenses (167.4) Selling and marketing expenses (231.5) General and administration expenses 2(c) (128.8) Finance costs 2(b) (14.9) Profit before income tax expense Income tax expense 3 (129.6) Net profit for the period Other comprehensive income Exchange differences on translation of foreign operations, net of hedges on net foreign investments 9 (319.0) Actuarial gains/(losses) on defined benefit plans, net of tax (33.7) Mark to market adjustment on available-for-sale financial assets (1.0) Total of other comprehensive income/(expense) (353.7) Total comprehensive income for the period Earnings per share (based on net profit for the period) Cents Basic earnings per share Diluted earnings per share CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 1

6 CSL Limited Consolidated Balance Sheet in USD As at 31 December 2011 Consolidated Entity December June Notes CURRENT ASSETS Cash and cash equivalents 5 1, Trade and other receivables Inventories 1, ,564.8 Other financial assets Total Current Assets 3, ,968.3 NON-CURRENT ASSETS Trade and other receivables Other financial assets Property, plant and equipment 6 1, ,297.5 Deferred tax assets Intangible assets Retirement benefit assets Total Non-Current Assets 2, ,478.2 TOTAL ASSETS 5, ,446.5 CURRENT LIABILITIES Trade and other payables Interest-bearing liabilities Current tax liabilities Provisions Deferred government grants Derivative financial instruments Total Current Liabilities ,016.7 NON-CURRENT LIABILITIES Trade and other payables Interest bearing liabilities 7 1, Deferred tax liabilities Provisions Deferred government grants Retirement benefit liabilities Total Non-Current Liabilities 1, TOTAL LIABILITIES 2, ,529.9 NET ASSETS 3, ,916.6 EQUITY Contributed equity 8 (406.0) (228.0) Reserves Retained earnings 3, ,162.5 TOTAL EQUITY 3, ,916.6 CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 2

7 CSL Limited Consolidated Statement of Changes in Equity in USD For the half year ended 31 December 2011 Ordinary shares Foreign currency translation reserve Share Availablefor-sale based payment investment reserve reserve Retained earnings Total At 1 July 2011 (228.0) (1.2) 3, ,916.6 Profit for the period Other comprehensive income - (319.0) - (1.0) (33.7) (353.7) Total comprehensive income for the half year - (319.0) - (1.0) Transactions with owners in their capacity as owners Share based payments Dividends (231.0) (231.0) Share buy back 8 (181.8) (181.8) Share issues - Employee share scheme Balance as at 31 December 2011 (406.0) (2.2) 3, ,664.6 CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 3

8 CSL Limited Consolidated Statement of Cash Flows in USD For the half-year ended 31 December 2011 Consolidated Entity December 2011 Notes Cash flows from Operating Activities Receipts from customers (inclusive of goods and services tax) 2,430.7 Payments to suppliers and employees (inclusive of goods and services tax) (1,747.8) Interest received 9.2 Income taxes paid (140.9) Borrowing costs (12.4) Net cash inflow / (outflow) from operating activities Cash flows from Investing Activities Proceeds from sale of property, plant and equipment 0.4 Payments for property, plant and equipment (147.6) Payments for intangible assets (5.4) Receipts from other financial assets 0.8 Net cash inflow / (outflow) from investing activities (151.8) Cash flows from Financing Activities Proceeds from issue of shares 4.0 Payment for shares bought back (181.8) Dividends paid (231.0) Receipts (payments) on closure of foreign exchange hedges 0.6 Proceeds from borrowings 7 1,112.4 Repayment of borrowings 7 (242.2) Net cash inflow / (outflow) from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Exchange rate variations on foreign cash and cash equivalent balances (46.4) Cash and cash equivalents at the end of the period 1,317.2 Reconciliation of cash and cash equivalents Cash and cash equivalents at the end of the period as shown in the statement of cash flows is reconciled as follows: Cash and cash equivalents 5 1,317.2 Bank overdrafts - 1,317.2 CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 4

9 CSL Limited For the half-year ended 31 December Segment Information Reportable segments are: (a) CSL Behring manufactures, markets and develops plasma products (b) Intellectual Property Licensing revenue and associated expenses from the licensing of Intellectual Property generated by the Group to unrelated third parties (c) Other Human Health comprises CSL Biotherapies, which manufactures and distributes biotherapeutic products, and Research & Development. Research & Development expense is allocated in accordance with management s expectation as to where a project s value will be realised. Where this is uncertain the expense is allocated to Other Human Health. CSL Behring Intellectual Property Licensing Other Human Health Intersegment Elimination Consolidated Group December 2011 December 2011 December 2011 December 2011 December 2011 Sales to external customers 1, ,324.0 Inter-segment sales (66.9) - Other revenue / Other income (excl interest income) Total segment revenue 1, (66.9) 2,413.9 Interest income 14.9 Unallocated revenue / income 0.6 Consolidated revenue 2,429.4 Segment EBIT (5.1) Unallocated revenue / income less unallocated costs (17.2) Consolidated EBIT Interest income 14.9 Finance costs (14.9) Consolidated profit before tax Income tax expense (129.6) Consolidated net profit after tax Amortisation and impairment loss Depreciation Segment EBITDA Unallocated revenue / income less unallocated costs (17.3) Unallocated depreciation and amortisation 2.5 Consolidated EBITDA Segment assets 4, ,015.9 (153.0) 5,063.1 Other unallocated assets 2,200.0 Elimination of amounts between operating segments and unallocated (1,339.3) Total assets 5,923.8 Segment liabilities 1, (153.0) 2,441.7 Other unallocated liabilities 1,156.8 Elimination of amounts between operating segments and unallocated (1,339.3) Total liabilities 2,259.2 CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 5

10 CSL Limited For the half-year ended 31 December Segment information (continued) Geographic areas Australia United States Switzerland Germany Rest of world Total December 2011 External sales revenue , Revenue, Income and Expenses from continuing operations Consolidated Entity December 2011 (a) Other Revenue Interest income 14.9 Rent 0.6 Royalties 64.6 Sundry (b) Finance Costs Interest paid / payable 14.9 (c) Other Expenses General and administration expenses: Expense of share based payments 11.7 Amortisation of intellectual property and software 14.8 Other relevant expenses Depreciation and amortisation of property, plant and equipment 71.5 Net foreign exchange losses Income Tax The reconciliation between income tax expense and the consolidated entity s applicable tax rate is as follows: Profit from continuing activities before income tax expense Income tax calculated at 30% Tax effect of non-assessable / non-deductible items Research and development (6.4) Other (non-assessable revenue)/non-deductible expenses 2.1 (Utilisation of tax losses)/unrecognised deferred tax assets - Effects of different rates of tax on overseas income (53.7) Under (over) provision in previous year (2.6) Income tax expense CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 6

11 CSL Limited For the half-year ended 31 December Earnings Per Share The following reflects the income and share information used in the calculation of basic and diluted earnings per share: Consolidated Entity December 2011 Earnings used in calculating basic earnings per share Number of shares December 2011 Weighted average number of ordinary shares used in the calculation of basic earnings per share: 523,991,134 Effect of dilutive securities: Share options 107,358 Performance rights 898,462 Global employee share plan 7,377 Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share 525,004,331 *Refer note 10 for a reconciliation of the movement in issued shares. 5 Cash and cash equivalents Consolidated Entity December June Cash at bank and on hand Cash deposits 1, Total cash and cash equivalents 1, Property, Plant and Equipment During the half-year ended 31 December 2011, the Group acquired assets with a cost of US$148.4m. CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 7

12 CSL Limited For the half-year ended 31 December Borrowings and repayments For the half year ended 31 December 2011, the Group has repaid US$14.5m of interest bearing debt, made US$1.9m of finance lease repayments, and refinanced US$225.8m of bank debt, a total of US$242.2m. During the half the year the Group established several new debt facilities to refinance maturing bank debt and to fund Corporate initiatives including the A$900m share buyback announced on 19 October The new debt facilities consist of the following: (i) US$750m Private Placement with maturities in November 2018 (US$200m), November 2021 (US$250m), November 2023 (US$200m) and November 2026 (US$100m). The weighted average interest rate on the Private Placement is 3.81%; (ii) US$430m and EUR155m Syndicated bank facility that matures in November As at balance date US$100m and EUR100m has been drawn under this facility; (iii) US$105m Syndicated bank facility that matures in November As at balance date US$50m has been drawn under this facility; and (iv) A fully drawn JPY6b bilateral bank facility that matures in November (v) The total proceeds received from the above facilities during the six months ending 31 December 2011 were US$1,112.4m. As at balance date the Group had US$456m in undrawn liquidity available under its bank debt facilities. 8 Contributed Equity Movements in the contributed equity Number of Shares Ordinary shares Balance as at 1 July ,840,532 (228.0) Shares issued to CSL employees through participation in: - Performance Option Plan 63, Performance Rights Plan 121, Global Employee Share Plan 102, Shares acquired under the Share Buy Back (5,761,762) (181.8) Balance as at 31 December ,366,002 (406.0) CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 8

13 CSL Limited For the half-year ended 31 December Reserves Consolidated Entity December 2011 Composition Share based payments reserve (i) 88.6 Foreign currency translation reserve (ii) Available-for-sale investments reserve (iii) (2.2) Nature and purpose of reserves (i) Share based payments reserve The share based payments reserve is used to recognise the fair value of options and performance rights issued but not exercised. (ii) Foreign currency translation reserve The results of foreign subsidiaries are translated into US dollars at average exchange rates. Assets and liabilities of foreign subsidiaries are translated to US dollars at exchange rates prevailing at balance date and resulting exchange differences are recognised in the foreign currency translation reserve in equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are taken to the foreign currency translation reserve in equity. (iii) Available-for-sale investments reserve Changes in the fair value and exchange differences arising on translation of investments classified as available-for-sale financial assets are recognised in other comprehensive income and accumulated in a separate reserve within equity. Amounts are reclassified to profit and loss when the associated assets are sold or impaired. CSL Interim Financial Statements for the six months ended 31 December 2011 presented in USD for the information of shareholders Page 9

14 CSL Limited ABN: Abbreviated Financial Statements presented in USD for the information of Shareholders These abbreviated financial statements have been prepared using the same accounting policies as applied to the CSL Limited financial statements issued on 22 August 2012 and available on the Company s website with the exception of the following: The financial statements were presented in AUDm while this report adopts a Presentation Currency of USD and is presented in.

15 CSL Limited Consolidated Statement of Comprehensive Income in USD 2012 Notes Continuing operations Sales revenue 3 4,616.4 Cost of sales (2,389.9) Gross profit 2,226.5 Other revenues Research and development expenses (369.7) Selling and marketing expenses (505.8) General and administration expenses (237.7) Finance costs 3 (40.5) Profit before income tax expense 1,270.0 Income tax expense 4 (246.1) Profit attributable to members of the parent company 22 1,023.9 Other comprehensive income Exchange differences on translation of foreign operations, net of hedges on foreign investments 21 (364.5) Actuarial gains/(losses) on defined benefit plans, net of tax 22 (49.2) Mark to Market adjustment on available-for-sale financial assets Total of other comprehensive income/(expenses) (412.5) Total comprehensive income for the period Earnings per share 5 Cents Basic earnings per share Diluted earnings per share The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. CSL Financial Statements presented in USD for the information of shareholders Page 1

16 CSL Limited Consolidated Balance Sheet in USD As at 30 June Notes CURRENT ASSETS Cash and cash equivalents 6 1, Trade and other receivables Inventories 8 1, ,564.8 Current tax assets Other financial assets Total Current Assets 3, ,968.3 NON-CURRENT ASSETS Trade and other receivables Other financial assets Property, plant and equipment 10 1, ,297.5 Deferred tax assets Intangible assets Retirement benefit assets Total Non-Current Assets 2, ,478.2 TOTAL ASSETS 5, ,446.5 CURRENT LIABILITIES Trade and other payables Interest-bearing liabilities and borrowings Current tax liabilities Provisions Deferred government grants Derivative financial instruments Total Current Liabilities ,016.7 NON-CURRENT LIABILITIES Trade and other payables Interest-bearing liabilities and borrowings 15 1, Deferred tax liabilities Provisions Deferred government grants Retirement benefit liabilities Total Non-Current Liabilities 1, TOTAL LIABILITIES 2, ,529.9 NET ASSETS 3, ,916.6 EQUITY Contributed equity 20 (869.1) (228.0) Reserves Retained earnings 22 3, ,162.5 TOTAL EQUITY 24 3, ,916.6 The above consolidated balance sheet should be read in conjunction with the accompanying notes. CSL Financial Statements presented in USD for the information of shareholders Page 2

17 CSL Limited Consolidated Statement of Changes in Equity in USD Notes Contributed Equity Foreign currency translation reserve Share based payment reserve Availablefor-sale investment reserve Retained earnings Total At 1 July 2011 (228.0) (1.2) 3, ,916.6 Profit for the period , ,023.9 Other comprehensive income - (364.5) (49.2) (412.5) Total comprehensive income for the full year - (364.5) Transactions with owners in their capacity as owners Share based payments Dividends (424.3) (424.3) Share buy back 20 (650.1) (650.1) Share issues - Employee share scheme Balance as at 30 June 2012 (869.1) , ,476.7 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. CSL Financial Statements presented in USD for the information of shareholders Page 3

18 CSL Limited Consolidated Statement of Cash Flows in USD Notes 2012 Cash flows from Operating Activities Receipts from customers 4,839.5 Payments to suppliers and employees (3,383.1) Cash generated from operations 1,456.4 Income taxes paid (252.3) Interest received 37.2 Finance costs paid (35.5) Net cash inflow from operating activities 25 1,205.8 Cash flows from Investing Activities Proceeds from sale of property, plant and equipment 0.1 Payments for property, plant and equipment (309.2) Payments for intangible assets (14.2) Receipts from other financial assets 1.1 Net cash outflow from investing activities (322.2) Cash flows from Financing Activities Proceeds from issue of shares 10.3 Dividends paid 23 (424.3) Proceeds from borrowings 1,112.4 Repayment of borrowings (243.6) Payment for shares bought back (650.1) Payment for settlement of finance hedges 0.6 Net cash outflow from financing activities (194.7) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Exchange rate variations on foreign cash and cash equivalent balances (35.4) Cash at the end of the financial year 25 1,168.1 For non-cash financing activities refer to note 25. The above consolidated cash flow statement should be read in conjunction with the accompanying notes. CSL Financial Statements presented in USD for the information of shareholders Page 4

19 1. Corporate information CSL Limited is a for-profit company incorporated and domiciled in Australia and limited by shares publicly traded on the Australian Securities Exchange. Summary of significant accounting policies The accounting policies adopted in the preparation of the USD financial report are identical to those detailed in Note 1 of CSL Limited s Financial Report published in the CSL Limited Annual Report, with the exception of the presentation currency noted below. (a) Foreign currency translation i. Functional and presentation currency Items included in the financial statements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operates ( the functional currency ). The financial statements of CSL Limited (the parent entity of the Group) are measured in Australian Dollars which is that entity s functional currency. The consolidated financial statements are presented in US dollars, which is the Group s presentation currency. ii. Translation and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in functional currencies are recognised in the statement of comprehensive income, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. iii. Group companies The results of foreign subsidiaries are translated into US dollars at average exchange rates. Assets and liabilities of foreign subsidiaries are translated to US dollars at exchange rates prevailing at balance date. All resulting exchange differences are recognised in other comprehensive income and in the foreign currency translation reserve in equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognised in other comprehensive income and in the foreign currency translation reserve in equity. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of comprehensive income, as part of the gain on sale or loss on sale where applicable. CSL Financial Statements presented in USD for the information of shareholders Page 5

20 2 Segment Information Description of Segments Reportable segments are: CSL Behring manufactures markets and develops plasma products. Intellectual Property Licensing revenue and associated expenses from the licensing of Intellectual Property generated by the Group to unrelated third parties. Other Human Health comprises CSL Bioplasma and CSL Biotherapies. These businesses manufacture and distribute biotherapeutic products and are disclosed in aggregate as they exhibit similar economic characteristics. Geographical areas of operation The Group operates predominantly in four specific geographic areas, namely Australia, the United States of America, Switzerland, and Germany. The rest of the Group s operations are spread across many countries and are collectively disclosed as Rest of World in note 2. Segment Accounting Policies Inter-segment sales are carried out on an arm s length basis and reflect current market prices. Segment accounting policies are the same as the Group s policies described in note 1. During the financial year, there were no changes in segment accounting policies. CSL Financial Statements presented in USD for the information of shareholders Page 6

21 2 Segment Information (continued) CSL Behring Intellectual Property Licensing Other Human Health Intersegment Elimination Consolidated Group Sales to external customers 3, ,616.4 Inter-segment sales (145.4) - Other revenue (excl interest income) Total segment revenue 3, (145.4) 4,771.7 Interest income 42.8 Unallocated revenue / income Consolidated revenue 4,813.6 (0.9) Segment EBIT 1, (38.2) - 1,318.4 Unallocated revenue / income less unallocated costs Consolidated EBIT 1,267.7 Interest income 42.8 Finance costs Consolidated profit before tax 1,270.0 Income tax expense (50.7) (40.5) (246.1) Consolidated net profit after tax 1,023.9 Amortisation Depreciation Segment EBITDA 1, ,491.0 Unallocated revenue / income less unallocated costs (50.7) Unallocated depreciation and amortisation 5.4 Consolidated EBITDA 1,445.7 Segment assets 4, ,087.3 (168.2) 5,211.2 Other unallocated assets 1,598.1 Elimination of amounts between operating segments and unallocated (908.0) Total assets 5,901.3 Segment liabilities 1, (168.2) 2,189.2 Other unallocated liabilities 1,143.4 Elimination of amounts between operating segments and unallocated (908.0) Total liabilities 2,424.6 Other information - capital expenditure Payments for property, plant and equipment Payments for software intangibles Total capital expenditure CSL Financial Statements presented in USD for the information of shareholders Page 7

22 2 Segment Information (continued) Geographic areas Australia United States Switzerland Germany Rest of world Total June 2012 External sales revenue , , ,616.4 Property, plant, equipment and intangible assets , Revenue and expenses from continuing operations Revenue Sales revenue 4,616.4 Other revenue Royalties and licence revenue Finance revenue 42.8 Rent 1.3 Other revenue 10.8 Total other revenues Total revenue from continuing operations 4,813.6 Finance revenue comprises: Interest income: Other persons and/or corporations 42.8 Total finance revenue 42.8 Finance costs Interest expense: Other persons and/or corporations 40.5 Total finance costs 40.5 CSL Financial Statements presented in USD for the information of shareholders Page 8

23 Notes Revenue and expenses (continued) Depreciation and amortisation Depreciation and amortisation of fixed assets Building depreciation Plant and equipment depreciation Leased property, plant and equipment amortisation Leasehold improvements amortisation Total depreciation and amortisation of fixed assets Amortisation of intangibles Intellectual property Software Total amortisation of intangibles 29.6 Impairment loss Intellectual property 12 - Total depreciation, amortisation and impairment expense Other expenses Write-down of inventory to net realisable value 78.5 Doubtful debts 27.1 Net loss on disposal of property, plant and equipment 2.5 Net foreign exchange loss 7.7 Lease payments and related expenses Rental expenses relating to operating leases 34.7 Employee benefits expense Salaries and wages Defined benefit plan expense 20.6 Defined contribution plan expense 19.8 Share based payments expense (LTI) Share based payments expense (EDIP) 11.7 Total employee benefits expense 1,049.3 CSL Financial Statements presented in USD for the information of shareholders Page 9

24 Notes Income tax expense Income tax expense recognised in the statement of comprehensive income Current tax expense Current year Deferred tax expense Origination and reversal of temporary differences 11 (19.4) Tax losses recognised - Total deferred tax expense (19.4) Over provided in prior years (0.6) Income tax expense Reconciliation between tax expense and pre-tax net profit The reconciliation between tax expense and the product of accounting profit before income tax multiplied by the Group s applicable income tax rate is as follows: Accounting profit before income tax Income tax calculated at 30% Research and development (10.7) Other non-deductible items 4.1 Utilisation of tax losses/unrecognised deferred tax - Effects of different rates of tax on overseas income (127.7) Over provision in prior year (0.6) Income tax expense Income tax recognised directly in equity Deferred tax benefit Share based payments 1.0 Income tax benefit recognised in equity CSL Financial Statements presented in USD for the information of shareholders Page 10

25 Earnings Per Share Earnings used in calculating basic and dilutive earnings per share comprises: Profit attributable to ordinary shareholders 1,023.9 Number of shares 2012 Weighted average number of ordinary shares used in the calculation of basic earnings per share: 519,233,274 Effect of dilutive securities: Employee options 95,871 Employee performance rights 965,977 Global employee share plan 9,380 Adjusted weighted average number of ordinary shares used in the calculation of diluted earnings per share: 520,304,502 Options and performance rights Options and performance rights granted to employees are considered to be potential ordinary shares that have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options and rights have not been included in the determination of basic earnings per share. CSL Financial Statements presented in USD for the information of shareholders Page 11

26 Cash and cash equivalents Cash at bank and on hand Cash deposits Total cash and cash equivalents 1, Note 25(a) contains a reconciliation of the above figures to cash at the end of the financial year as shown in the statement of cash flows. 7 Trade and other receivables Current Trade receivables Less: Provision for impairment loss (i) (46.2) (24.6) Sundry receivables Prepayments Carrying amount of current trade and other receivables Non-Current Related parties Loans to other employees Long term deposits Other receivables Carrying amount of non-current trade and other receivables CSL Financial Statements presented in USD for the information of shareholders Page 12

27 Inventories Raw materials and stores at the lower of cost and net realisable value Work in progress at the lower of cost and net realisable value Finished goods at the lower of cost and net realisable value Total inventories at the lower of cost and net realisable value 1, , Other financial assets Current At fair value through the profit or loss: Managed financial assets (held for trading) Available-for-sale financial assets - - Total current other financial assets as at 30 June Non-current At fair value through the profit or loss: Managed financial assets Total non-current other financial assets as at 30 June CSL Financial Statements presented in USD for the information of shareholders Page 13

28 Property, Plant and Equipment Land at cost Opening balance 1 July 27.2 Currency translation differences (1.6) Closing balance 30 June Buildings at cost Opening balance 1 July Transferred from capital work in progress 17.5 Disposals (0.6) Currency translation differences (25.8) Closing balance 30 June Accumulated depreciation and impairment losses Opening balance 1 July 82.5 Depreciation for the year 13.9 Disposals (0.4) Currency translation differences (8.5) Closing balance 30 June Net book value of buildings Net book value of land and buildings Leasehold improvements at cost Opening balance 1 July 68.5 Transferred from capital work in progress 16.6 Other additions 0.5 Disposals (0.9) Currency translation differences (0.3) Closing balance 30 June Accumulated amortisation and impairment Opening balance 1 July 21.5 Amortisation for the year 6.1 Disposals (0.8) Currency translation differences 0.2 Closing balance 30 June Net book value of leasehold improvements CSL Financial Statements presented in USD for the information of shareholders Page 14

29 Property, Plant and Equipment (continued) Plant and equipment at cost Opening balance 1 July 1,628.1 Transferred from capital work in progress Other additions 16.9 Disposals (18.9) Currency translation differences (142.2) Closing balance 30 June 1, ,628.1 Accumulated depreciation and impairment Opening balance 1 July Depreciation for the year Disposals (18.0) Currency translation differences (73.8) Closing balance 30 June Net book value of plant and equipment Leased property, plant and equipment at cost Opening balance 1 July 35.3 Other additions 1.1 Disposals (1.3) Currency translation differences (4.2) Closing balance 30 June Accumulated amortisation and impairment Opening balance 15.4 Amortisation for the year 3.0 Disposals (0.9) Currency translation differences (2.5) Closing balance 30 June Net book value of leased property, plant and equipment Capital work in progress Opening balance 1 July Other additions Disposals (1.0) Transferred to buildings at cost (17.5) Transferred to plant and equipment at cost (137.7) Transferred to leasehold improvements at cost (16.6) Currency translation differences (19.3) Closing balance 30 June Total net book value of property, plant and equipment 1, ,297.5 CSL Financial Statements presented in USD for the information of shareholders Page 15

30 Deferred tax assets and liabilities Deferred tax asset Deferred tax liability (111.1) (131.3) Net deferred tax asset/(liability) Deferred tax balances reflect temporary differences attributable to: Amounts recognised in the statement of comprehensive income Trade and other receivables (8.8) Inventories 91.8 Property, plant and equipment (71.5) Intangible assets (43.1) Other assets (0.6) Trade and other payables 10.5 Interest bearing liabilities 3.9 Other liabilities and provisions 50.9 Retirement assets/(liabilities) 30.6 Tax bases not in net assets share based payments 10.4 Recognised carry-forward tax losses Amounts recognised in equity Capital raising costs 1.8 Share based payments Net deferred tax asset/(liability) 87.4 Movement in temporary differences during the year Opening balance 55.9 Credited/(charged) to profit before tax 19.4 Credited/(charged) to other comprehensive income 15.9 Credited/(charged) to equity 1.0 Currency translation difference (4.8) Closing balance 87.4 Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: Tax losses: Expiry date in less than 1 year 0.1 Expiry date greater than 1 year but less than 5 years - Expiry date greater than 5 years - No expiry date Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available for utilisation in the entities that have recorded these losses. CSL Financial Statements presented in USD for the information of shareholders Page 16

31 Intangible Assets Carrying amounts Goodwill Opening balance at 1 July Currency translation differences (83.8) Closing balance at 30 June Intellectual property Opening balance at 1 July Additions 0.6 Disposals (1.6) Currency translation differences (35.2) Closing balance at 30 June Accumulated amortisation and impairment Opening balance at 1 July Amortisation for the year 18.8 Currency translation differences (18.9) Closing balance at 30 June Net intellectual property Software Opening balance at 1 July 58.5 Additions 0.6 Transfers from intangible capital work in progress 15.0 Currency translation differences (2.1) Closing balance at 30 June Accumulated amortisation and impairment Opening balance at 1 July 20.2 Amortisation for the year 10.8 Currency translation differences (1.1) Closing balance at 30 June Net Software Intangible capital work in progress Opening balance at 1 July 11.4 Additions 13.3 Transfers to software intangibles (15.0) Currency translation differences (0.3) Closing balance at 30 June Total net intangible assets as at 30 June The amortisation charge is recognised in general and administration expenses in the statement of comprehensive income. CSL Financial Statements presented in USD for the information of shareholders Page 17

32 Intangible Assets (continued) Impairment tests for cash generating units containing goodwill For the purpose of impairment testing, goodwill is allocated to the business unit which represents the lowest level within the Group at which the goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill allocated to each unit are as follows: CSL Behring CSL Biotherapies 12.3 Closing balance of goodwill as at 30 June The impairment tests for these cash generating units are based on value in use calculations. These calculations use cash flow projections based on actual operating results and the three-year strategic business plan, after which a terminal value is calculated based on a business valuation multiple. The valuation multiple has been calculated based on independent external analyst views, long term government bond rates and the company s pre-tax cost of debt. Projected cash flows have been discounted by using the implied pre-tax discount rate of 8.4% associated with the business valuation multiple discussed above. Each unit s recoverable amount exceeds the carrying value of its net assets, inclusive of goodwill. It is not considered a reasonable possibility for a change in assumptions to occur that would lead to a unit s recoverable amount falling below the carrying value of each unit s respective net assets. CSL Financial Statements presented in USD for the information of shareholders Page 18

33 Retirement benefit assets and liabilities Retirement benefit assets Non-current defined benefit plans (refer note 26) Retirement benefit liabilities Non-current defined benefit plans (refer note 26) Trade and other payables Current Trade payables Accruals and other payables Carrying amount of current trade and other payables Non-current Share based payments (EDIP) Carrying amount of non-current trade and other payables Interest-bearing liabilities and borrowings Current Bank overdrafts Unsecured Bank loans Unsecured (a) Senior Unsecured Notes - Unsecured (b) Lease liability Secured (c) Non-current Bank loans Unsecured (a) Senior Unsecured Notes - Unsecured (b) Lease liability - Secured (c) , (a) (b) (c) The Group has three revolving committed bank facilities. These facilities mature in November Interest on the facilities is paid quarterly in arrears at a variable rate. As at the reporting date the Group had US$454.2m in undrawn funds available under these facilities. Represents US$844.1 million and Euro 55.9 million of Senior Unsecured Notes placed into the US Private Placement market. The Euro notes and US$94.1 million of the US$ notes mature in December The balance of the US$ notes mature in November 2018 (US$200m), November 2021 (US$250m), November 2023 (US$200m) and November 2026 (US$100m). The weighted average interest rate on the notes is fixed at 4.04% for the US$ notes and 4.67% for the Euro notes. Finance leases have an average lease term of 12 years. The weighted average discount rate implicit in the leases is 5.75%. The Group s lease liabilities are secured by leased assets of US$15.9m. In the event of default, leased assets revert to the lessor. CSL Financial Statements presented in USD for the information of shareholders Page 19

34 Tax liabilities Current tax receivable Current tax liability Provisions Current Employee benefits Restructuring Onerous contracts Other Non-current Employee benefits Other Restructuring A restructuring provision is recognised when the main features of the restructuring are planned. Restructuring plans must set out the businesses, locations and approximate number of employees affected and the expenditures that will be undertaken, together with an implementation timetable. There must be a demonstrable commitment and valid expectation in those affected that the restructuring plan will be implemented prior to a provision being recognised. Onerous contracts The provision recognised is based on the excess of the estimated cash flows to meet the unavoidable costs, over the estimated cash flows to be received in relation to certain contracts, having regard to the risks of the activities relating to the contracts. Discounting Where the effect of discounting is determined to be material to the provision, the net estimated cash flows are discounted using a pre-tax discount rate reflecting current market assessments of the time value of money and the risks specific to the liability. CSL Financial Statements presented in USD for the information of shareholders Page 20

35 Provisions (continued) Movements in provisions Restructuring Opening balance 4.4 Provided 3.4 Payments made (1.1) Currency differences (0.1) Closing balance Onerous contracts Opening balance 11.9 Currency differences (1.6) Closing balance Other Opening balance 3.2 Additional provision 0.3 Payments made (0.6) Currency differences (0.4) Closing balance Deferred government grants Current deferred income Non-current deferred income Total deferred government grants Derivative financial instruments current liabilities Forward Currency Contracts The Group has entered into forward currency contracts as an economic hedge against variations in the value of certain trade payable amounts due to currency fluctuations. All movements in the fair value of these forward currency contracts are recognised in the profit and loss when they occur. CSL Financial Statements presented in USD for the information of shareholders Page 21

36 Contributed equity Ordinary shares issued and fully paid - - Share buy-back reserve (869.1) (228.0) Total contributed equity (869.1) (228.0) Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the company. Due to share buy-backs, the balance for ordinary share contributed equity has been reduced to nil, and a reserve created to reflect the excess of shares bought over the original amount of subscribed capital. Movement in contributed equity 2012 Number of shares Opening balance at 1 July 524,840,532 (228.0) Shares issued to employees via: - Performance Options (i) 163, Performance Rights (for nil consideration) 240, GESP (ii) 207, Share buy-back, inclusive of cost (18,522,253) (650.1) Closing balance 506,929,847 (869.1) 2012 (i) Options exercised under Performance Option plans as disclosed in note 27 were as follows - 128,670 issued at AU$ ,849 issued at AU$ ,295 issued at AU$ (ii) Shares issued to employees under Global Employee Share Plan (GESP) as disclosed in note 27 were as follows: - 102,876 issued at AU$24.17 on 7 September ,700 issued at AU$24.03 on 8 March CSL Financial Statements presented in USD for the information of shareholders Page 22

37 Reserves Share based payments reserve Foreign currency translation reserve Available-for-sale investments reserve - (1.2) Carrying value of reserves at 30 June Movements in reserves Share based payments reserve (i) Opening balance at 1 July 82.2 Share based payments expense 12.1 Deferred tax on share based payments 2.0 Closing balance at 30 June Foreign currency translation reserve (ii) Opening balance at 1 July Net exchange gains / (losses) on translation of foreign subsidiaries, net of hedge (364.5) Closing balance at 30 June Available-for-sale investments reserve (iii) Opening balance at 1 July (1.2) Mark to market adjustment on available-for-sale financial assets 1.2 Closing balance at 30 June - (1.2) Nature and purpose of reserves (i) (ii) (iii) Share based payments reserve The share based payments reserve is used to recognise the fair value of options, performance rights and global employee share plan rights issued to employees. Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations and exchange gains and losses arising on those foreign currency borrowings which are designated as hedging the Company s net investment in foreign operations. Available-for-sale investments reserve Changes in the fair value and exchange differences arising on translation of investments classified as available-for-sale financial assets are recognised in other comprehensive income and accumulated in a separate reserve within equity. Amounts are reclassified to profit and loss when the associated assets are sold or impaired. CSL Financial Statements presented in USD for the information of shareholders Page 23